Hindustan Unilever Limited (HUL), the leading FMCG company in India, faced a weaker-than-expected first quarter in the current financial year 2023-24 (April-June). The company’s standalone profit increased by 7.9% YoY to Rs 2,472 crore in the June quarter, but declined by 10% on a quarterly basis. However, HUL’s CEO and MD, Rohit, remains positive about the company’s growth and believes that the FMCG market is gradually recovering.
HUL’s Q1 2023-24 Profit Rises 7.9% YoY, but Declines by 10% Quarterly
Amidst this situation, brokerage firm Motilal Oswal maintains its buy rating for HUL, projecting a potential 19% jump in HUL shares from the current level. The company’s rural sales performed well in the June quarter, and this trend is expected to continue in the future. To boost volume recovery and return to pre-Corona levels, HUL plans to invest in advertisements and promotions, with expenses set at 9.8% of sales.
Motilal Oswal Maintains Buy Rating, Expects 19% Upside for HUL Shares
The brokerage is optimistic about investing in HUL due to falling commodity costs and improving rural demand, thus setting a target price of Rs 3,100.
Despite HUL shares slipping by 6% in the past two weeks from a one-year high of Rs 2768.50, experts believe there is potential for a 19% climb from the current level.